Highway Trust Fund Will Go Broke in Mid-August 2014

The U.S. DOT projects the Highway Account of the Highway Trust Fund will fall at current expenditure and receipt rates to a zero balance shortly after the first week of August.

The U.S. DOT projects the Mass Transit Account of the Highway Trust Fund will have a balance of approximately $440 million by September 1, 2014, the end of fiscal year 2014.

Photo credit: FHWA

Based on current spending and revenue trends, the U.S. Department of Transportation estimates that the Highway Account of the Highway Trust Fund will encounter a shortfall before the end of fiscal year (FY) 2014.

U.S. DOT's Highway Trust Fund Ticker, updated January 15, actually projects the Highway Account will have a zero balance shortly after the first week of August. The Mass Transit Account is expected to make it to the September 1 start of the next federal fiscal year with a $440 million balance.

The Highway Account began FY 2014 (September 1, 2013) with approximately $1.6 billion in cash. A $9.7 billion transfer from the General Fund to the Highway Account was processed shortly after the start of the fiscal year ($10.4 billion authorized in MAP-21, reduced by sequestration).

The surface transportation program continues to outlay at a greater pace than receipts come in, and the account's cash balance has dropped by nearly $3.4 billion.

The Mass Transit Account began FY 2014 with approximately $2.5 billion in cash. A $2 billion transfer from the General Fund to the Mass Transit Account was processed shortly after the start of the fiscal year ($2.2 billion authorized in MAP-21, reduced by sequestration).